Using Our First-mover Advantage to Make New Developments in Rapidly Growing East Asian Markets

In recent years, dramatic economic growth has transformed China from the world’s center of manufacturing into a consumer market as well. Not only Japanese companies, but also European and US-owned food product manufacturers, are aggressively making inroads into this market. Having commenced soybean crushing in 1988 with the establishment of Dalian Nisshin Oil Mills, Ltd., we subsequently founded a succession of new companies including a vegetable oils bottling plant, a processed oils and fats plant, and a food grade soybean processing plant, leading us to an advanced position in the market.

In October 2003, we reinforced business development in East Asian markets by setting up a holding company, The Nisshin OilliO (China) Investment Co., Ltd., based in Shanghai, to oversee our operating companies in China. The holding company formulates investment strategies appropriate to East Asian markets—in particular the diversifying Chinese market—and procures raw materials for the operating companies. In combination with measures to establish an efficient sales network within China, these activities are aimed at further expansion of our oils and fats business in East Asia. Moreover, to ensure that the Nisshin OilliO brand is trusted overseas as well as in Japan, we have started to integrate our quality control system and are actively promoting in Asian markets the perception of the "Nisshin OilliO Brand" as an assurance of quality products.

The Nisshin OilliO Group has recently accelerated the development of its manufacturing infrastructure in East Asia. The new Dalian Nisshin Oil Mills plant in Dalian's Beiliang Port District has started operations, which enhanced the soybean crushing capacity of the Group dramatically. And also in 2005, the Group acquired the controlling share of Intercontinental Specialty Fats Sdn. Bhd. in Malaysia, boosting the development of our palm oil business. We are now channeling all our efforts into developing the Group's businesses in East Asia, supported by a firm belief in our goals.

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